BELGRADE, April 30 (Reuters) - Italy's Fiat FIA.MI on Wednesday signed a memorandum of understanding with Serbia launching a strategic partnership and joint investment on car maker Zastava, officials said.
The agreement said Serbia and Fiat would establish a joint company, 70-percent owned by Fiat, that will invest 700 million euros ($1.09 billion) in the production of two new car models in Zastava’s plant in the town of Kragujevac.
“Fiat plans to start production of one new model by the end of next year, and of a second model by the end of 2010,” Serbian Economy Minister Mladjan Dinkic told reporters after the signing. (Reporting by Ivana Sekularac; Editing by Erica Billingham)
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